Baby Prius cuts fuel use by a third

The new compact Prius C hatchback has a claimed consumption of between 2.5 and 2.8 litres per 100 kilometres on the official Japanese test cycle (35-40km/L). Those figures will not directly translate to the Australian test cycle, however the Prius C should easily claim the crown of Australia's most efficient car when it arrives here in the first quarter of 2012.

The Prius C is powered by a "lightweight hybrid system" that includes a conventional 1.5-litre petrol engine combined with an electric motor, but Toyota has not disclosed any power outputs for the car.

The Japanese brand says the car's drivetrain has been organised to free up interior space. As such, it has a lower centre of gravity than some other city cars - the Yaris, for example, sits about six centimetres higher - and Toyota says its low ride height "contributes to spirited driving".

Toyota Australia has not announced any further information on the car, but a logical guess would see the company aiming for a sub-$25K price tag - positioning the Prius C against Honda's Insight, which is currently the cheapest hybrid available, at $29,990.

Toyota will also unveil a number of concept cars, including the FCV-R, a new hydrogen-powered sedan that it says is due to be launched in 2015. Toyota says the Camry-sized sedan will be spacious enough for four passengers and a bootful of bags, and that it will have a cruising distance of about 700km.

Another Toyota premiere is the FT-EV III, a tiny two-door, four-seat electric city runabout that Toyota claims can complete more than 100km on a single charge of its lithium-ion battery pack.

The final new exhibit at the Toyota stand in Tokyo will be the Fun-Vii, a quirky concept that Toyota says "heralds a future where people, cars and society are linked". Little more is known, but it is expected that the concept will offer neat tech gizmos, including a system that allows the owner to wallpaper images onto the side of their car from their phone.